The Indian stock market concluded the week of July 7th to 11th, 2025, on a decidedly lower note, marking the third consecutive week of decline for the benchmark indices. A confluence of factors, including weaker-than-expected corporate earnings from key sectors and escalating global trade tensions, contributed to a cautious sentiment among investors. Despite domestic institutional support, the market reflected broader de-risking by foreign investors.
Table of Contents
- Key Market Indices Performance – Sensex & Nifty Weekly Wrap
- Sectoral Performance Overview
- Top Stock Market News – Domestic & Global Events
- FII and DII Activity – Weekly Institutional Flow
- IPO Market Update – Listings, Subscriptions, and New Issues
- Top Gainers and Losers – Weekly Movers
- Economic and Global Cues – Inflation, Crude, Global Risks
- Final Takeaway – Weekly Summary
The week proved challenging for India's leading equity benchmarks:
- Nifty 50: Declined by 1.22%, closing at 25,149.85 points. The close below the psychological 25,200 mark reinforced the prevailing bearish sentiment.
- Sensex: Slipped by 1.12%, ending at 82,500.47 points.
Wrap-up: Both indices extended their losing streak for a third consecutive week, indicating a deeper market correction driven by weak earnings reports and deteriorating global cues.
The week's market movements revealed a clear divergence in sectoral performance, reflecting a shift in investor preference towards defensive plays.
Top Weekly Gainers:
- Nifty Pharma: +0.68%
- Details: This defensive sector demonstrated resilience amidst broader market weakness, as investors sought refuge in segments traditionally less susceptible to economic downturns. Stable earnings and a strategic rotation of capital likely contributed.
- Key Stocks Contributing: Sun Pharmaceutical Industries (+0.71% on July 11th) was a notable performer.
- Nifty FMCG: +0.51%
- Details: Similar to Pharma, the FMCG sector benefited from its defensive nature, offering stable demand and consistent earnings. Investor preference for capital preservation drove gains here.
- Key Stocks Contributing: Hindustan Unilever (HUL) surged +4.63% on July 11th, providing a significant positive impetus following a key management announcement. Godrej Consumer Products (+6.33%) and Bajaj Consumer Care (+5.56%) were also strong on July 7th.
Top Weekly Losers:
- Nifty IT: -1.78%
- Details: The IT sector was heavily impacted by weaker-than-expected corporate earnings, particularly from bellwether companies like TCS, and concerns over global macroeconomic demand. Profit booking was widespread.
- Key Stocks Impacted: Tata Consultancy Services (TCS) slipped -3.47% on July 11th after its Q1 FY26 earnings (revenue down 3.1% YoY). Wipro also dropped -2.62%.
- Nifty Auto: -1.77%
- Details: This growth-oriented sector faced significant selling pressure, largely attributed to weak global cues and profit booking.
- Key Stocks Impacted: Mahindra & Mahindra (M&M) dropped -2.92% and Hero MotoCorp fell -2.74% on July 11th. Bajaj Auto Ltd. (-2.54%) also saw declines.
- Nifty Midcap Select: -1.39%
- Nifty Midcap 50: -1.16%
- Nifty Smallcap 100: -1.02%
- Details: Broader market segments experienced notable declines, indicating widespread selling pressure and a "risk-off" environment affecting smaller and mid-sized companies.
- Key Stocks Impacted: IREDA slipped 6% after Q1 profit fell 36% YoY. Tata Elxsi cracked 7% after Q1 profit dropped 22% YoY. Defence stocks like Bharat Dynamics Ltd (BDL) and Mazagon Dock Shipbuilders Ltd (MDL) also experienced declines due to profit booking.
Wrap-up: The outperformance of defensive sectors while major indices and cyclical sectors declined illustrated a classic market response during periods of uncertainty. Investors prioritized capital preservation and stable returns over aggressive growth, reflecting concerns about economic stability and corporate earnings.
Several significant domestic and global developments shaped the trajectory of the Indian stock market this week, reinforcing the cautious sentiment.
Key Domestic Events:
- TCS Q1 FY26 Earnings: Tata Consultancy Services (TCS) reported a 6% YoY profit increase but a 3.1% YoY revenue decline to ₹63,437 crore. Management cited weak macroeconomic demand and geopolitical headwinds. This performance underscored challenges in the IT sector.
- Hindustan Unilever (HUL) Leadership Change: Shares rallied impressively after the announcement of Priya Nair's appointment as MD & CEO, effective August 1st, 2025, providing positive impetus for the FMCG giant.
- Other Corporate Announcements:
- IREDA shares slipped 6% after its Q1 profit fell 36% YoY.
- Tata Elxsi shares cracked 7% after its Q1 profit dropped 22% YoY.
- Zee Entertainment shares fell 6% as its fundraising plan failed amid shareholder pushback.
- Defence Stocks experienced declines as investors engaged in profit booking amidst easing geopolitical tensions and valuation concerns.
Global Highlights:
- US Tariffs by President Donald Trump: On Monday, US President Donald Trump announced new tariffs on 14 nations, including key Asian trading partners. This immediately heightened global trade tensions and significantly dampened market sentiment, highlighting the Indian market's sensitivity to global policy decisions.
- Global Market Cues: Signals from global markets were mixed, with S&P 500 futures seeing declines, while Japan's Topix and Hong Kong's Hang Seng registered some gains. European markets also exhibited mixed performance.
Wrap-up: The combined effect of weaker TCS earnings and escalating global trade tensions led to broad-based selling across Indian equities, particularly impacting the IT and Auto sectors. Global economic uncertainty prompted clients to postpone non-essential technology investments, leading financial analysts to revise down FY26 earnings projections for the IT sector.
The investment patterns of Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) provided crucial insights into market sentiment and liquidity dynamics this week.
Daily Breakdown (Capital Market Segment):
- July 7th: FIIs net sold ₹346.8 crore (cash segment); DIIs net bought ₹1,853.4 crore.
- July 8th: FIIs net sold ₹26.10 crore (cash segment); DIIs net bought ₹1,366.80 crore.
- July 9th: FIIs net bought ₹77.00 crore (cash segment); DIIs net bought ₹920.80 crore.
- July 10th: FIIs net bought ₹221.10 crore (cash segment); DIIs net bought ₹591.30 crore.
- July 11th: FIIs recorded a substantial net selling of ₹5,104.22 crore across BSE, NSE, and MSEI. DIIs recorded a robust net purchase of ₹3,558.63 crore across BSE, NSE, and MSEI.
Weekly Total:
- Foreign Institutional Investors (FIIs): Were significant net sellers for the week, with a notable outflow on the final trading day, which exacerbated the market downturn.
- Domestic Institutional Investors (DIIs): Consistently acted as net buyers throughout the week, providing crucial support and helping to absorb a significant portion of the selling pressure from FIIs.
Wrap-up: The substantial net selling by FIIs indicated a cautious or risk-off sentiment among foreign investors, exerting downward pressure. Conversely, the sustained buying by DIIs suggested a strong underlying confidence among domestic institutions in the long-term prospects of the Indian market. This dynamic provided a vital cushion against global uncertainties and FII-led volatility, preventing more drastic market corrections and highlighting the increasing maturity and resilience of the Indian market.
The primary market remained active this week, with several Initial Public Offerings (IPOs) opening and closing, showcasing varied investor responses.
Key IPOs and Listings of the Week (July 7th – 11th, 2025):
- Asston Pharmaceuticals IPO (SME IPO): This issue, which closed on July 11th, garnered exceptional investor interest, subscribed a remarkable 173.35 times. Listing is slated for July 16th.
- GLEN Industries IPO (SME IPO): Open from July 8th to 10th, aimed to raise ₹63.02 crores. GMP ranged from ₹18 to ₹25, suggesting a potential listing gain of 25.77%.
- Smarten Power Systems IPO (SME IPO): Ran from July 7th to 9th, with listing anticipated on July 14th.
- Chemkart India IPO (SME IPO): Also open from July 7th to 9th, its listing is expected on July 14th.
- Travel Food Services IPO (Mainboard IPO): Open from July 7th to 9th, this mainboard issue had a price band of ₹1,045 to ₹1,100. It secured ₹598.8 crore from anchor investors, indicating strong institutional backing. GMP stood at ₹23, implying a potential listing gain of 2.09%.
- Smartworks Coworking IPO (Mainboard IPO): Opened on July 10th and was scheduled to close on July 14th. It was fully subscribed on its second day, with the NII portion booked 149%.
- Crizac IPO (Mainboard IPO): Having closed on July 4th, this IPO was expected to list on July 9th. By Day 2, it was subscribed 2.75 times overall, but the QIB segment received only 0.15 times subscription, highlighting selective institutional interest.
Wrap-up: The stark contrast in subscription levels, such as Asston Pharmaceuticals' overwhelming demand versus Crizac's muted QIB interest, suggested that investor appetite in the primary market was highly selective. This indicated that investors were exercising caution and conducting due diligence, rather than blindly subscribing to all new issues. The strong anchor book for Travel Food Services also served as a strong signal of institutional confidence.
Upcoming IPOs in the Next Week (July 14th – 20th, 2025):
The individual stock performance this week mirrored the broader market sentiment, with defensive sectors and positive company-specific news driving gains, while disappointing earnings and sector-wide weakness led to declines.
Top Gainers (July 11th):
Top Losers (July 11th):
Wrap-up: The week's performance clearly illustrated a "risk-off" environment. Investors moved capital into sectors and stocks traditionally less sensitive to economic cycles and global shocks. Significant drops in TCS, IREDA, and Tata Elxsi shares following disappointing Q1 earnings demonstrated the market's high sensitivity to corporate performance.
Beyond corporate earnings and institutional flows, broader macroeconomic indicators and international developments played a crucial role in shaping the Indian market's performance.
Domestic Highlights:
- GDP Growth: India's Gross Domestic Product (GDP) grew a robust 6.5% in 2024–25, projected to continue into 2025–26, positioning India as the fastest-growing major economy globally.
- Inflation: Consumer Price Index (CPI) inflation eased significantly to 2.82% in May 2025, its lowest level since February 2019. Food inflation also cooled considerably to 0.99%.
- RBI Monetary Policy: The Reserve Bank of India (RBI) maintained its repo rate unchanged at 5.5% in its June 2025 Monetary Policy meeting, aiming for a 4% CPI inflation target while supporting growth.
- Foreign Exchange Reserves: Remained robust at USD 697.9 billion as of June 20th, 2025, providing a strong safety net.
Global Highlights:
- Crude Oil Prices: The Indian basket of crude oil was priced at $71.17 per barrel as of July 10th. India's strategic imports of Russian crude played a crucial role in preventing global oil prices from surging.
- US Federal Reserve News: The US Federal Reserve held interest rates steady at 4.25%-4.50% at its June 2025 meeting. Fed Chair Powell expressed concerns that large increases in tariffs are likely to generate a rise in inflation, a slowdown in economic growth, and an increase in unemployment, potentially leading to a "stagflation" scenario. The Fed's median forecast still implied two 25 basis points rate cuts before year-end 2025.
- Broader Global Geopolitical Factors: Evolving US policy, growing trade protectionism (especially US President Trump's new tariffs), increased government intervention, heightened global competition, and regional conflicts continued to accelerate fragmentation, directly contributing to global trade tensions.
Wrap-up: India's strong domestic macroeconomic indicators presented a picture of internal stability. However, this domestic strength was juxtaposed against significant external vulnerabilities, particularly US trade tariffs and broader global geopolitical fragmentation. While the RBI's steady rate decision focused on domestic stability, the Fed's concerns about tariffs leading to "stagflation" highlighted the potential for imported economic headwinds.
The Indian stock market experienced its third consecutive weekly decline from July 7th to 11th, 2025, largely due to disappointing Q1 earnings from major IT companies and increasing global trade tensions, particularly from the US. This led to a notable shift in investor sentiment, with defensive sectors like Pharma and FMCG outperforming as investors sought stability, while growth-oriented sectors like IT and Auto underperformed.
Despite foreign institutional investors (FIIs) being net sellers, domestic institutional investors (DIIs) provided crucial support through consistent net buying, demonstrating the growing influence of local capital. The primary market showed selective investor interest in IPOs, emphasizing fundamentals.
Overall, while short-term volatility and external headwinds prevailed, India's strong macroeconomic fundamentals remained a positive underlying factor, highlighting that a holistic view encompassing corporate, macroeconomic, and geopolitical analyses is essential for navigating the dynamic Indian stock market.